The Congressional Budget Office says the government will run a $845 billion deficit this year, a modest improvement compared to last year's $1.1 trillion — reported the AP

The CBO also projects that the economy will grow just 1.4% this year — if $85 billion in across-the-board spending cuts take effect as scheduled March 1. Unemployment would average 8% according to the agency.

The report predicts the deficit would dip to $430 billion by 2015, the lowest since the government posted a $459 billion deficit is former President George W. Bush's last year in office. However, over the coming decade, the deficit would total $7 trillion.